Under Chapter X of the Industrial Relations Code, 2020, prior permission of the appropriate Government is mandatory before lay-off, retrenchment or closure only in respect of industrial establishments (being a factory, mine or plantation, not of a seasonal character) employing:

Chapter X of the Industrial Relations Code, 2020 mandates prior permission of the appropriate Government before lay-off, retrenchment, or closure only for factories, mines, or plantations (not of a seasonal character or where work is intermittent) employing three hundred or more workers on an average per working day in the preceding twelve months. This is a substantial increase from the one hundred workers threshold under the corresponding Chapter V-B of the Industrial Disputes Act, 1947, with flexibility for the appropriate Government to notify a still higher threshold. Establishments below this threshold remain governed by the general (lower-threshold) compensation and notice provisions for lay-off and retrenchment under the Code, without needing prior governmental permission.